# Sempra Energy (SRE.US)

Canonical: https://gigainvestors.com/s/SRE

Analysis as of: 2026-10-16T07:32:05.010Z. Financial observations: FY1996–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $81.93 per share; close as of 2026-10-15.

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.12×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.20×

- FY2018: 0.17×

- FY2019: 0.25×

- FY2020: 0.24×

- FY2021: 0.23×

- FY2022: 0.23×

- FY2023: 0.19×

- FY2024: 0.22×

- FY2025: 0.24×

- LTM to Jun 2026: 0.27×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 4.9%

- ROIC, second-lowest year: 4.2%

- Typical minus recent gross margin: -1.6 pp

- Typical gross margin (annual median): 27.5%

- Recent gross margin (lower of latest and 3-year median): 29.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 39.8%

- ROIC including acquisitions, ten-year median: -1.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 5.1%

- FY2018: 4.4%

- FY2019: 5.4%

- FY2020: 5.5%

- FY2021: 5.9%

- FY2022: 5.2%

- FY2023: 4.7%

- FY2024: 4.2%

- FY2025: 3.6%

- LTM to Jun 2026: 4.4%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: -0.31×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$3.5B

- Net income, five-year total: $11B

- Return on incremental invested capital: 1.9%

- Working capital / revenue, annual change: 0.2 pp

- Working capital / revenue, change between three-year averages: 0.9 pp

- Working capital / revenue, final three-year average: 7.1%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: -0.73×

- FY2024: -0.65×

- FY2025: -1.53×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 4.9% vs 4.2%

- Per-share earnings: 2.69 to 4.49 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.7%

- Ordinary dilution, 5-year annual growth: 2.3%

- Market cap gain: $32B

- Cumulative retained earnings: $6.4B

- Diluted shares, 10-year annual growth: 2.7%

- Diluted shares, 5-year annual growth: 2.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 6.6%

- Per-share value change: $1.80

- Per-share value, starting three-year median: $2.69

- Per-share value, ending three-year median: $4.49

- Buybacks concentrated in cheaper years (correlation): 0.13

- Average buyback yield: 0.6%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $1.9B

- Cumulative net income, 10 years: $20B

- ROIC, first three-year median: 4.9%

- ROIC, last three-year median: 4.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: $2.73

- FY2017: $0.51

- FY2018: $1.95

- FY2019: $3.90

- FY2020: $6.73

- FY2021: $2.11

- FY2022: $3.38

- FY2023: $4.86

- FY2024: $4.49

- FY2025: $2.81

### accounting: pass

- Sloan accruals: -2.5%

- Receivables to sales index (DSRI): 0.76×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 1.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.49×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.00×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.0%

- FY2017: -6.7%

- FY2018: -4.1%

- FY2019: -1.4%

- FY2020: 2.0%

- FY2021: -3.5%

- FY2022: 1.3%

- FY2023: -3.6%

- FY2024: -2.1%

- FY2025: -2.5%

## Holders

## Price story

Up 17% since Oct 2023 · "Sempra (SRE) Margin Decline Reinforces Questions on Premium Valuation and Slower Growth Prospects" (finance.yahoo.com, Nov 2025) · sales -0.8%

Story as of 2026-10-16T09:59:37.448Z; price observation 2026-10-15.

- 2025-05-29: Sempra's Port Arthur Phase 2 approved to export LNG ([seekingalpha.com](https://seekingalpha.com/news/4453685-sempras-port-arthur-phase-2-approved-to-export-lng?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-08-27: EQT signs 20-year deal to buy LNG from Sempra's Port Arthur Phase 2 ([seekingalpha.com](https://seekingalpha.com/news/4489560-eqt-signs-20-year-deal-to-buy-lng-from-sempras-port-arthur-phase-2?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-10-20: Sempra raised at Barclays as SIP sale unlocks Texas Capital acceleration ([seekingalpha.com](https://seekingalpha.com/news/4505668-sempra-raised-at-barclays-as-sip-sale-unlocks-texas-capital-acceleration?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-11-28: Sempra Energy Gains From LNG Expansion and Major Investments ([finance.yahoo.com](https://finance.yahoo.com/news/sempra-energy-gains-lng-expansion-123500624.html))

- 2026-07-27: Sempra to extend ECA LNG Phase 1 commissioning after finding compressor damage ([seekingalpha.com](https://seekingalpha.com/news/4619085-sempra-to-extend-eca-lng-phase-1-commissioning-after-finding-compressor-damage?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-09-01: Sempra (SRE) Could Be 21% Undervalued As California Wildfire Liability Rules Shift ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/sempra-sre-could-21-undervalued-021601575.html))

### Sales · FY2025–2026

sales -0.8%; source https://www.sec.gov/Archives/edgar/data/1032208/000103220826000010/sre-20251231.htm; observed 2026-02-26.

- FY2017: $11B 

- FY2018: $10B 

- FY2019: $11B 

- FY2020: $11B 

- FY2021: $13B 

- FY2022: $16B 

- FY2023: $16B 

- FY2024: $13B 

- FY2025: $14B 

- FY2026: $14B 

### Gross margin · FY2026

gross margin 41.7%; source https://www.sec.gov/Archives/edgar/data/1032208/000103220826000010/sre-20251231.htm; observed 2026-02-26.

- FY2017: 24.3% 

- FY2018: 22.1% 

- FY2019: 30.0% 

- FY2020: 28.9% 

- FY2021: 27.9% 

- FY2022: 26.8% 

- FY2023: 23.7% 

- FY2024: 27.2% 

- FY2025: 29.1% 

- FY2026: 41.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in utilities diversified; annual sales are USD 13.7 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1032208/000103220826000010/sre-20251231.htm (filed 2026-02-26); FY2025: revenue 13712000000; grossProfit 3997000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SRE.US: Sempra engages in the regulated utilities business in the United States and Mexico. It operates through three segments: Sempra California, Sempra Texas Utilities, and Sempra Infrastructure. It also invests in and operates electric and gas utilities and other energy infrastructure that provides energy services to customers. The Sempra California segment provides natural gas and electric services to Southern California and part of central California. As of December 31, 2025, it offered electric services to approximately 3.6 million population and natural gas services to approximately 3.3 million population that covers 4,100 square miles. This segment owns and operates a natural gas distribution, transmission, and storage system that supplies natural gas. As of December 31, 2025, it served a population of 21.3 million covering an area of 24,000 square miles. The Sempra Texas Utilities segment engages in the regulated electricity transmission and distribution utility business. As of December 31, 2025, transmission system included approximately 18,418 circuit miles of transmission lines; 1,333 transmission and distribution substations; interconnection to 230 third-party generation facilities totaling 63,670 MW; and distribution system included more than 4.1 million points of delivery and consisted of 127,398 circuit miles of overhead and underground lines. The Sempra Infrastructure segment develops, constructs, operates, and invests in energy infrastructure to help enable the access to cleaner energy in markets in the United States, Mexico, and internationally. The company was formerly known as Sempra Energy and changed its name to Sempra in May 2023. Sempra was incorporated in 1996 and is headquartered in San Diego, California.

### Why customers stay

Margins ranged from 23.7% to 29.1% during 2023–25; it earns 4.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2023: grossProfit / revenue = 23.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2024: grossProfit / revenue = 27.2%.

- Source: https://www.sec.gov/Archives/edgar/data/1032208/000103220826000010/sre-20251231.htm (filed 2026-02-26); FY2025: grossProfit / revenue = 29.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); 10-year return on capital observations [[2017,0.050634418478075996],[2018,0.043919510061242346],[2019,0.05385100187944707],[2020,0.05471331171234495],[2021,0.05890471270831426],[2022,0.052457207833039185],[2023,0.04668748077291709],[2024,0.04169274488213825],[2025,0.035808696247842255],[2026,0.04365061945681058]]; median 0.04866094962549654. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 958 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2017: growth capex 2215000000; upkeep 1490000000; owner earnings 257000000. Growth capex / owner earnings = 8.618677042801556.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2019: growth capex 2139000000; upkeep 1569000000; owner earnings 2198000000. Growth capex / owner earnings = 0.9731574158325751.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2020: growth capex 1835948296.5928435; upkeep 2840051703.4071565; owner earnings 2758948296.5928435. Growth capex / owner earnings = 0.6654522300617751.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2021: growth capex 3160000000; upkeep 1855000000; owner earnings 1318000000. Growth capex / owner earnings = 2.3975720789074355.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); FY2022: growth capex 3338000000; upkeep 2019000000; owner earnings 2139000000. Growth capex / owner earnings = 1.560542309490416.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Dividend observations: [[2016,686000000],[2017,756000000],[2018,966000000],[2019,1135000000],[2020,1331000000],[2021,1430000000],[2022,1474000000],[2023,1527000000],[2024,1543000000],[2025,1643000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1032208/000103220826000010/sre-20251231.htm (filed 2026-02-26); FY2025: cash repurchases 958000000 USD.

### Are managers owners

Insiders own 0.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SRE.US SharesStats.PercentInsiders = 0.099 percentage points; cache date 2026-10-16.

### What could break it

"Oncor’s capital expenditures plan will result in significant liquidity needs" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1032208/000103220826000010/sre-20251231.htm (filed 2026-02-26); Oncor’s capital expenditures plan will result in significant liquidity needs

### What the price says

The price is 3.9 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-26); Closing price 81.93 USD; reporting-to-trading FX 1; FY2025 annual sales per share 20.971940546873327; price multiple 3.9066484962077017. FY2025 cash earnings/share -4.308021453239013. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $53.55 per share

- 2016-11: $49.90 per share

- 2016-12: $50.32 per share

- 2017-01: $51.20 per share

- 2017-02: $55.15 per share

- 2017-03: $55.25 per share

- 2017-04: $56.51 per share

- 2017-05: $58.25 per share

- 2017-06: $56.38 per share

- 2017-07: $56.51 per share

- 2017-08: $58.97 per share

- 2017-09: $57.07 per share

- 2017-10: $58.75 per share

- 2017-11: $60.50 per share

- 2017-12: $53.46 per share

- 2018-01: $53.51 per share

- 2018-02: $54.49 per share

- 2018-03: $55.61 per share

- 2018-04: $55.90 per share

- 2018-05: $53.27 per share

- 2018-06: $58.06 per share

- 2018-07: $57.80 per share

- 2018-08: $58.04 per share

- 2018-09: $56.88 per share

- 2018-10: $55.06 per share

- 2018-11: $57.61 per share

- 2018-12: $54.10 per share

- 2019-01: $58.49 per share

- 2019-02: $60.22 per share

- 2019-03: $62.93 per share

- 2019-04: $63.98 per share

- 2019-05: $65.73 per share

- 2019-06: $68.72 per share

- 2019-07: $67.72 per share

- 2019-08: $70.82 per share

- 2019-09: $73.81 per share

- 2019-10: $72.26 per share

- 2019-11: $73.64 per share

- 2019-12: $75.74 per share

- 2020-01: $80.32 per share

- 2020-02: $69.89 per share

- 2020-03: $56.50 per share

- 2020-04: $61.93 per share

- 2020-05: $63.16 per share

- 2020-06: $58.62 per share

- 2020-07: $62.23 per share

- 2020-08: $61.83 per share

- 2020-09: $59.18 per share

- 2020-10: $62.68 per share

- 2020-11: $63.74 per share

- 2020-12: $63.71 per share

- 2021-01: $61.88 per share

- 2021-02: $57.99 per share

- 2021-03: $66.29 per share

- 2021-04: $68.79 per share

- 2021-05: $67.75 per share

- 2021-06: $66.24 per share

- 2021-07: $65.33 per share

- 2021-08: $66.18 per share

- 2021-09: $63.25 per share

- 2021-10: $63.82 per share

- 2021-11: $59.94 per share

- 2021-12: $66.14 per share

- 2022-01: $69.08 per share

- 2022-02: $72.11 per share

- 2022-03: $84.06 per share

- 2022-04: $80.68 per share

- 2022-05: $81.93 per share

- 2022-06: $75.14 per share

- 2022-07: $82.90 per share

- 2022-08: $82.49 per share

- 2022-09: $74.97 per share

- 2022-10: $75.47 per share

- 2022-11: $83.10 per share

- 2022-12: $77.27 per share

- 2023-01: $80.17 per share

- 2023-02: $74.98 per share

- 2023-03: $75.58 per share

- 2023-04: $77.75 per share

- 2023-05: $71.77 per share

- 2023-06: $72.80 per share

- 2023-07: $74.51 per share

- 2023-08: $70.22 per share

- 2023-09: $68.03 per share

- 2023-10: $70.03 per share

- 2023-11: $72.87 per share

- 2023-12: $74.73 per share

- 2024-01: $71.56 per share

- 2024-02: $70.60 per share

- 2024-03: $71.83 per share

- 2024-04: $71.63 per share

- 2024-05: $77.03 per share

- 2024-06: $76.06 per share

- 2024-07: $80.06 per share

- 2024-08: $82.18 per share

- 2024-09: $83.63 per share

- 2024-10: $83.37 per share

- 2024-11: $93.67 per share

- 2024-12: $87.72 per share

- 2025-01: $82.93 per share

- 2025-02: $71.57 per share

- 2025-03: $71.36 per share

- 2025-04: $74.27 per share

- 2025-05: $78.59 per share

- 2025-06: $75.77 per share

- 2025-07: $81.68 per share

- 2025-08: $82.56 per share

- 2025-09: $89.98 per share

- 2025-10: $91.94 per share

- 2025-11: $94.72 per share

- 2025-12: $88.29 per share

- 2026-01: $87.01 per share

- 2026-02: $96.27 per share

- 2026-03: $97.17 per share

- 2026-04: $95.12 per share

- 2026-05: $89.13 per share

- 2026-06: $92.71 per share

- 2026-07: $88.55 per share

- 2026-08: $81.70 per share

- 2026-09: $77.96 per share

- 2026-10: $82.37 per share

## Annual estimated value (USD per share)

- FY2017: low $5.67 per share, central $6.44 per share, high $7.46 per share

- FY2020: low $6.13 per share, central $6.80 per share, high $7.69 per share

- FY2021: low $23.49 per share, central $26.66 per share, high $30.88 per share

- FY2022: low $39.35 per share, central $47.70 per share, high $55.57 per share

- FY2023: low $39.22 per share, central $46.73 per share, high $54.40 per share

- FY2024: low $24.08 per share, central $27.16 per share, high $31.28 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:37:50.154Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1032208/000103220826000010/sre-20251231.htm); period 2025-12-31, filed 2026-02-26.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.